All Forum Posts by: Jim Breedlove

During 2015, I set up a Texas Series LLC to hold my 8 single family home rental properties. My attorney filed deeds to transfer the properties out of my name - into the name of the individual series within my LLC. Rather than cancelling the insurance policies in my personal name, my insurance agent suggested that I simply keep the policies in my name but name the LLC as an "Additional Insured" on the policies. Apparently, this is how her investor clients handle insurance.

I'm wondering if this is an acceptable approach, or should I cancel my current policies (with the LLC named as an additional insured), and get insurance in the name of the LLC. Of course, my goal is to maintain the integrity of my asset protection plan.

Has anyone considered this issue?

Michael,

In your post, you included examples of what is considered a financed property for FNMA guidline purpoes. You note that "...total ownership of a residential property that is held in the name of a Corporation or S-Corporation, even if the borrower is the owner of the Corporation, and the financing is in the name of the Corporation or S-Corporation – NO, this is not considered a “financed property.”

Question: If the property is held in the name of an S-Corporation, and the loan is in the name of the S-Corporation, but I give the bank a personal guarantee, would this S-Corp owned property be considered a "financed property" under FNMA guidelines?

Thanks, Jared and Mark.

Jared - you mentioned that I need to look for a portfolio lender that can offer "non-agency programs". Could you please elaborate on the meaning of "non-agency programs"?

-Jim

I'm looking to do a cash out refinance on my 10 conforming investment property loans, but just learned that the FNMA rules do not allow cash out refinance for investors with over 4 loans. I am considering refinancing all the conforming loans with a local community bank. The new loans would be held in the name of an LLC (of which I am the sole member), and the bank would require me to personally garantee the loans. My plan is to refinance, take some cash out, and then buy 10 more houses using conforming loans. Is this possible, or would the personal garantee requried by my local bank somehow mean that I would still have 10 financed properties in my name? I'm concerned about going through the trouble to refinance with the local bank, but still being inelgible for conforming loans - based on the 10 loan limit.